Earnings call transcript Q4 2022

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Operator

Good afternoon. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Western Midstream Partners' Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to Daniel Jenkins, Director of Investor Relations. ahead. go Please

Daniel Jenkins

accompanying glad and Midstream's I'm call. join today disclosures call, us like earnings last Thank contain reconciliations. release quarter you and Western important the today's that fourth remind forward-looking conference deck full for and to night's statements you. regarding you could slide non-GAAP year I'd XXXX

to what factors and for a filings discuss reference Midstream's that cause reference posted Please could public materials Western from most on other recent differ actual Relevant today. our results of we Form risk materially XX-K are description website.

pleased you be Michael Kristen Chief Executive March to X. Additionally, With out Midstream Shults, I'm beginning available Ure, our our will copies later. inform are mailed Partners' be K-X today and will Officer. Hard website Officer; several Western Financial our Chief on days that me

to call turn over now Michael. I'll the

Michael Ure

and Thank you, everyone. Daniel, good afternoon,

operational Midstream net We year partnership. strong are performance of of history adjusted the highest financial to recorded our Western report pleased income in the we and at EBITDA and another as

announced construction and needed is support investment by to in continued the growth throughput growth XXXX. The Train Mentone offset primarily Delaware capital Basin necessary XXXX which Basin, We continued the capital by in expected complete driven the DJ guidance, growth III, of our declines. throughput to

first detail conjunction our Board discuss in to Also, will that, I'm with the very all later pleased XXXX if paid to of in call. have in recommended of May, Directors our in I would announce enhanced distribution base we more an which that approved, distribution be quarter

instrumental positioning and XXXX there fourth more WES that for our in have success. discuss detail, we growth are several Before results future accomplishments in in been quarter

for Mentone supported natural oil III. Occidental teams foundation commitments. commercial their and to with minimum proceed sanction executed with gas Specifically, created the by value crude treating processing the We Train agreements, multiple our amendments to decision long-term built tremendous volume necessary to WES and

per XXX to capacity day our million firm firm and up incremental peak provide capacity amendments these of processing infrastructure. of barrels per treating cubic aggregate, In day feet peak XX,XXX to on up

starting We expect volumes over associated and growing these coming with the years. in XXXX amendments

a We and agreement our to on firm system. volumes service provide capacity dedicated executed also ConocoPhillips long-term with

benefited ConocoPhillips this remain one have agreement in gas coming we natural XXXX, We our customers and largest from over already to anticipate of G&P years. the

success our aggregate, gas commercial of with the XXXX year-end for as XX% throughput at of third-party accounted produced in XX% XX% our and throughout XX% By Delaware In year-end year-end year. teams achieved to Basin, natural third-party as to our producers water the XXXX XXXX. throughput volumes great approximately compared at compared

III successes to Train in by growth the commercial end increased progressing XXXX. our Mentone for to that and Mentone these the future and report fourth be our the construction of Train volume of obligations. sustainable expectations initial I'm These III to pleased quarter confidence need according should fulfill is operational

development and of oil the sequestration a and around capture, in bases of Delaware DJ asset the intensity products executed with and carbon of with year utilization existing last dioxide low the pursuing Occidental Basins. also We opportunities carbon market to gas opportunities produce to and intent letter our in deliver objective transportation, through and

later organizations, and ways forward you this continue for progress teams Our create to to value on updating year. evaluate both our to we look

closing. our gas the approximately which two natural pro-rata the Texas for West Westex our equity half sale distributions second in is acquisition the $X of We million, of XXXX. in Cactus our XX% already Complex XX% also the through facility tied interest $XXX for pipeline II executed in included partner's crude and into of oil which of million interest notable The $XX M&A transactions processing million, Ranch

increasing and philosophy M&A were accretive transactions transactions in Delaware line the with our stack These in allocating our of processing towards Basin. capital

closing to buyback unit for our additional program upon $X.XX to our of value Cactus billion, commitment the demonstrating framework. our capital Additionally, creating return increased we unitholders II, sale through our

and increased financial capital year, return established back and initial enhanced our amount, executed almost which year. last refined we was first million on policy increasing debt this buyback in $XXX base within distribution time XXXX, This And XX% unit buying the of framework structure. our retiring we our by authorization three-year distribution our subsequently by

senior with out our base May of distribution was we $X XXXX payments. X.X base times. approximately We by base amount distribution of per of XXXX, In X.X unit distribution year-end the to increased million times, aggregate well to driving net XXXX. calendar leverage our XXXX, of that we million retired in paid first Specifically, ratio paid $XXX annualized in $XXX XX% notes quarter threshold an beginning in below year-end year our

we million notes. XXXX, January retired In floating rate $XXX senior of

we of consideration recent repurchased for Our this units rate. XX.X With million obligations next remaining comes debt note aggregate maturity all in retirement, are fixed XXXX. due of XXXX, senior In our an per X.X $XXX of approximately unit. consideration approximately quarter $XX in units aggregate the million of fourth the XXXX. included million of repurchase at This of $XX.XX average for price million

XXXX, our obligations buyback base activity unit reduce will by future approximately an aggregate basis. $XX in distribution that estimate annualized on million We

performance, an financial We balance strong our and our that based current distribution our XXXX sheet. outlook have payment enhanced recommended consider to our Board improved business greatly they on

of over times several leverage efforts in X.X resulted net years the consistent XXXX. Our year-end at past

expect needs future, continue to cash permitting operating generation As we to cash strong look flow. to us free our business near-term flow our the remain the EBITDA with funding of adjusted and we

loss our the Board sale have by $XXX more uses enhanced and Additionally, Cactus cash it April. asset by we net than permanently million offsets of formerly flow for from discretion considers $XXX from million of of burden, repurchasing available we distribution XXXX WES' reducing of that in flow an and the Therefore, proceeds cash recommended as II. net consider units distribution $XXX free sales when the which and reduced distribution annual interest debt million,

approximately distribution on current to million our with based base XXXX return create our unit capital conjunction substantial our relative and We and WES as outstanding to $X.XX distribution view count midstream paid unitholders we for enhanced to enhanced differentiate announce in unit on our framework specifically these overall to an Based peers. considerations, to be of quarter value per long-term further expect distribution first way in $XXX our or a May.

over With that, the I will turn to call Kristen.

Kristen Shults

Michael, good afternoon, and you, Thank everyone.

lower throughput Our of fourth on and the with primarily by due in gas Winter decreased Basin associated basis, certain throughput assets to the X% quarter sequential noncore natural from impact throughput slightly a Elliott. Delaware Storm quarter lower

equity our also lower We on investments quarter. the throughput gas natural during experienced

throughput and a was on Our of divestiture to crude or decreased primarily sequential basis. oil This due Cactus quarter in II X% natural closed gas by November. NGLs early liquids the that

by have would sale the II, Excluding crude of oil X% and NGL sequentially. our Cactus throughput decreased

Produced by prior the X% decreased due compared water primarily to the quarter, Elliot. throughput Storm impact Winter to from

$X.XX adjusted natural volumes prior decreased primarily gas quarter residue and from and our overall to lower by gross compared fourth well This margin Mcf per quarter. as combined NGL was with retained Delaware Basin. lower NGL mix in decrease contract the assets residue for our Our the driven by contribution as pricing

asset. cumulative service a all quarter offset was with associated Texas cost by rate the our in of South fourth This favorable higher adjustment revenue recognition recorded to the pertaining partially

be Mcf adjusted the quarter expect with our line to gross first fourth margin We per in quarter.

primarily increased for the barrel NGL to quarter, oil by assets $X.XX divestiture and quarter crude the Our fourth compared to equity per II prior margin Cactus the for due investment. gross adjusted of

was received While offset quarter The fourth per Basin cumulative result in by margin. the throughput in which we unit of cost DJ at recorded positively the partially a with declined the early impact positive service quarter-over-quarter as sale, unfavorable distribution November, recognition an lower system. revenue of rates associated payments oil our impacted adjustment

of modestly to to barrel the the cumulative first fourth II. to margin the revenue sale Cactus the fourth of increase adjustment quarter our recorded adjusted relative unfavorable due quarter, We gross the expect and in recognition quarter per mostly impact

barrel margin adjusted compared our revenue. for lower produced deficiency gross water by to per fee quarter, due $X.XX assets prior decreased to primarily the Our

first cost quarter rate of on became fourth barrel due We per that margin service the mostly modestly redetermination decrease January adjusted to expect gross quarter, a relative our to X. to effective

fourth the overall the million. partners $XXX decreased Elliot. due adjusted adjusted of margin primarily gross During available we of $XXX Winter the effects quarter, to our throughput million, limited income and to lower net quarter, to $XX EBITDA generated third Storm by Relative and million from

contribution less our revenue experienced volumes lower we overall from margin NGL with NGL retained and Additionally, combined and pricing. residue

quarter, margin overall cumulative oil we natural also certain assets. neutral previously cost these adjusted revenue fourth income But WES. gas NGL and unit our adjustments adjusted to crude individual per mentioned, impacted recorded of the was and the net gross fourth both with adjustments our impact for EBITDA During quarter, of The and associated to cumulative rates adjustments service redetermined contracts. recorded on recognition as

gas expense, we and primarily in As saw and utility associated sequential decrease shifting lower a driven lower O&M by projects natural electricity certain pricing expense XXXX. into maintenance early expected, usage quarter our with

quarter third also transformation support costs efforts. field-level to included The our project

higher we produced towards due expense to business. to expect XXXX, pertaining As water modestly costs our the than land-related look trend personnel XXXX future, to primarily O&M higher we and our

consumption As to the months. a greater summer our with associated due energy reminder, we during utility expect expense seasonality

flow. cash to Turning

cash in quarter million. after $XXX flow of from November $XXX third payment flow $XXX flow Free free quarter totaled cash fourth million. totaled distribution Our operations cash generating our million,

XX. paid of We quarter cash-based $X.XX on also distribution declared our fourth unit February per

the with per announced prior equal to base previously $X is of distribution and consistent annualized is unit. quarter's distribution This target the distribution

to Turning our year full results.

X% Full products throughput NGL Full an increased per X% XXXX year by XXXX, billion XXXX. throughput XXXX. of day, year full cubic per natural year compared XXX,XXX increase day. average crude to increased barrels gas all Our compared for full oil averaged to year feet and portfolio-wide X.XX throughput year-over-year. three which averaged

leading barrels was increases natural averaged increase gas Delaware produced of adjusted performance increased year-over-year. in with an per year and retained our per residue XXXX. average throughput XXXX. $X.XX, gross in This NGL primarily an margin averaged increased Basin XXXX volumes assets coupled These primarily mix, full were of the and Full water Mcf year to for XXX,XXX XXXX, year-over-year In higher to due contract strong increase compared throughput driven XX% plant prices. to commodity day, $X.XX by

Additionally, at has Texas margin which to a gas other assets. the Mcf natural average West Complex, than increase compared throughput higher per

oil Cactus the certain throughput and our DJ crude due oil relative the deficiency margin adjusted revenues for to assets margin and as crude system and increased other average contracts $X.XX service an smaller per to XXXX NGL impact and in negative distributions from Delaware a for increase higher a the barrel compared II. was fee increase assets, cumulative at Basin this in of year-over-year, has primarily adjustment Basin, to of catch-up $X.XX, related oil per to cost NGL an than gross Our which barrel averaged

of increase an barrel Our year-over-year. gross $X.XX produced water adjusted assets $X.XX, per for margin averaged

the the As recorded Michael history adjusted our and billion and partnership of billion, in previously mentioned, EBITDA we $X.XX in net highest respectively. $X.XX generating income XXXX,

primarily adjusted pricing. uplift the and higher Our performance. in products increased overall for performance volumes a Basin retained with commodity in residue NGL three throughput with Delaware all was This and driven EBITDA margin resulted strong by coupled plant associated

This approximately positioned cash WES to XXXX. deliver of for billion $X.X operating flow

expenditures and totaled of well capital needs to connect and capital million of expansion mostly $XXX Our in growing XXXX consisted our the customers. support

the spend costs maintenance was early due spending timeline expansion a disciplined of included below and and XXXX XXXX for Mentone part throughout guidance into end XXXX. shifting capital projects construction III team's range, year, continued the into our focus to Our our that on moving Train refined in low capital some

free Our low guidance flow XXXX, range. generation end billion the just totaled our cash of XXXX $X.XXX in above

performance asset consistent and disciplined profitable capital focus Our our our and spending. base highlights on

$X achieved of guidance our year base unit XXXX per distribution an full basis. annualized on We

core base a maintain is to framework. return sustainable a our Our component ability distribution capital of

attention water. increase produced we percentage As for natural expect mid-XXs our gas throughput a turn average to and our mid-single-digit portfolio-wide year-over-year by we a XXXX, percentage to for

approximately wells to Cactus an Delaware Basin, crude we low barrels to the relative an expect throughput year-over-year expect day XXXX. increase our average by which average to oil, excluding throughput single-digit the products increased year-over-year per In online average XX,XXX of all impact percentage to of XXXX. after a II, XXXX in For of coming for across number in WES increase three we due to accounted

in in came the which We relative expect producers is year that XXXX. Basin, to wells a approximately wells meaningful add approximately this to Delaware online XXX increase XXX

In have necessary we the our projected the connect throughput for crude budget to amount expansion XXXX. this volume continue to well decline and into both oil capital result, Basin, incremental a we capital average natural service expect NGLs. to gas XXXX and and in year-over-year of As DJ allocated

coupled steep less from to to acreage the on profile wells or We loads. decline throughput steady is to be throughput expect our shallow on due maturity out with XXXX our gas primarily consistent overall This continue with natural the of results.

NGLs, but third and first crude additional point our come inflection in XXXX. average year-over-year For the expecting expect the in decline, oil to an we we're throughput online half as of still wells quarter

in As the due in expect begin crude minimal on growing our NGL volume and half crude increase a the associated that in collect we throughput second oil mind impact such, adjusted half we minimum this Keep fee throughput back to of and have EBITDA oil commitments. XXXX. will in revenue with to deficiency NGL

know, and plant first natural conditions, XXXX. actual assumes processing for XXXX. recovery through key half our of amendments, legacy our pole contract recoveries it during for gas analysis as new recoveries you percent and on elections these into several from of exposure As normal operating we to contracts certain are we portfolio-wide agreements converted well price the entered and recovery these providing commodity and contracts Based This customers fixed contracts. analysis proceeds commodity price as and expected our includes sensitivity fixed

XXXX compared XXXX. to was as year, financially, we WES for successful and an by grew EBITDA operationally adjusted X% incredibly

EBITDA in inflation. adjusted our retained this commodity result strong benefit structure to and contract diligently structures enable that managing growth Basin, cost volumes the our of NGL period Delaware our us increased and the price on Our of residue was from throughput during environment price the

XXXX to Turning guidance.

billion. our XXXX $X.XX implies billion, $X.XX to We the of midpoint billion EBITDA $X.X expect to which between range adjusted

throughput as grow our to on our We XX% the expect of EBITDA to comprise level position in continues the basin. asset Delaware Basin

Cactus that expect in will by from production increased partially of We II. Basin and Delaware be Basin declines adjusted continued the impact the DJ EBITDA the offset the from sale

commitments fee the associated expect in and in our Maverick volume of revenue facility Capita Utah. with at long-term assets minimum certain expiration our we efficiency Additionally, South with reduced Basin Texas

revenue we and deficiency XXXX expect As to we reduced our look Basin beyond, Maverick fee from assets.

material our anticipate any However, minimum volume on we commitment expiration do not owned assets.

DJ expect our from our coming to the the we XX% equity and Finally, XX% investments assets. of approximately in with EBITDA XXXX contribute noncore Basin asset-level other remaining

We expect million million. of implying midpoint expenditure guidance XXXX between $XXX range capital and $XXX million, a to $XXX our

III. the capital to be mostly capital, We Mentone Basin, with the which in end We came of capital expect be budget construction Train into Train below III XXXX capital XX% low to approximately capital moving our spent with Mentone including in of expansion the of due associated majority will the range, Delaware associated of our guidance XXXX.

Westex higher to base, between Additionally, the expanded billion $X.XXX we asset expect have our into slightly generate our Ranch capital maintenance capital associated includes billion to we cash expect to adjusted $X.XXX and free with Taking account, guidance both flow acquisition. EBITDA which XXXX. in expenditure

unit. an base maintain equal annualized to $X distribution expect than per greater We or to

discretion. the distribution year-end as by subject year times payment Also, our reminder, full potential governed on a enhanced be in Board's and threshold will any to X.X XXXX of financial XXXX based performance, our leverage XXXX

the back turn over now call I'll Michael. to

Michael Ure

Kristen. Thanks,

debt a senior with unit to distribution pleased through and have XXXX, our our since XX% return Since of aggregate stand-alone retired of notes and leverage consistent or now effort time senior through net repurchases capital our to the stakeholders notes January to becoming reduced issuance debt retirement, X.X $X.XX and ratio at we balance XXXX are year-end. organization. We billion year-end

common aggregate have we of Anadarko price million buyback unaffected since average a of XXXX. including at organization unit. exchange, of represents consideration unit million becoming per units the count a now perspective of XX.X% the stand-alone From a note common unit $XX.XX This and XX beginning an for retired total at the $XXX

of at XXXX. first out of base in total the distributions a to increase We billion the of $X.XX of including the beginning quarter aggregate distribution since base the have paid XX% XXXX, amount now

unit unit As XXXX. distributions have notes in of current our repurchases of December total $XX.XX in flow issuance, returned retirement per senior debt XXXX free of now since cash and to we appreciation January a substantial XX, $X.XX and WES market-driven on unitholders a plan a returned cash and through in XXXX, continue and basis, generated unit retirement we unit distributions $X in flow any our debt for excludes toward repurchases which free price. amount allocating to

be companies, maintaining within to peers relative by publicly one by flow to S&P our a our cash a relative XXX opportunities Energy perspective, of attractive from yield large-cap to investment cash continues evaluating the current and the continues WES a wider margin midstream traded free the the flow screen highest and in XXX. most S&P yield midstream market as and trading free energy When to space. leader valuation price-to-earnings WES midstream Index the

yield, looking superior which approach its return market in balanced has at distributions increases midstream peers, by midstream companies whole, a return total traded the specifically between buybacks, and a and the when total leader unit outperformed generating WES capital market large-cap to using focuses publicly we be materially capital Additionally, as continue buybacks. on distribution and yield a

In to as unit both a and approach retirements return. due, notes market we through capital repurchases balanced distributions have addition came overall debt, open reduced repurchases, and maintaining of

result, a leaders relative traded debt our to peers and in the large-cap midstream midstream we As among companies. are reduction publicly

capital of WES midstream through One is this publicly primary midstream amongst that ways our of demonstrates traded returns our in top peers large-cap WES the and the generation three employed, companies. strong on is leadership

in has total adjusted Over and allocating diligently increasing and remained focused lowering EBITDA a which capital, increase unit meaningful per WES's operational the of administrative past units, all several resulted on organization debt years, assets. reducing our repurchasing in on and costs, profitability, has return

all approximately organization year, XX% XX% of X% EBITDA we decreased early increasing XXXX. year-over-year unit EBITDA total X% units a becoming to per and stand-alone in count concerted adjusted our since by adjusted by in which our Relative through increased our last to unit XXXX, repurchase and effort resulted

times ratio X.X early times net We XXXX X.X from reduced at XXXX. year-end also our have to in leverage

and Additionally, further publicly companies, of WES the total relative leader which to returns our our in traded is the on and peers demonstrates power assets midstream midstream profitability generating strong asset large-cap base. earnings

as the footing strong financial despite contract stable long-term balance structures. volatility. is considering recent our and look on Finally, well to WES greatly future, market WES is positioned we improved our sheet

majority were and minimum throughput of natural supported gas cost-of-service produced was XXX% or crude crude volume About throughput XX% type and XXXX. serviced NGLs escalation commitments. a NGLs revenues gas, produced XXXX, from natural approximately fee-based in either our protection our contracts and and fee or of oil inflation by of contract either XX% our under included some In fee-based structure. cost-of-service water and of the oil our through of water And

Our contract of times structures continue will have inflation. financial cost and provided, market provide during to volatility expect stability and we

will balanced on we WES returns. Additionally, remain total which our position further framework focused leader return capital a will in capital as

I'd XXXX. commending our the on by contractors for work and to hard throughout and business focus close like employees our call objectives keen their

Your positioned dedication for and and has XXXX organization commitment success undoubtedly beyond. our great in

open that, the for line questions. With we'll

Operator

your Instructions] the [Operator And Citi. of from Spiro first Dounis line question comes from

open. Your line is

Spiro Dounis

want finer XXXX. beyond with the maybe on to point just start it. outlook And put may I a

be your to look business, double digits. I at if growing Delaware So, appears

sounds of And translate growth. so, it And looks that that EBITDA out that few year. laid that nature you just that a factors bit in there the temporary didn't overshadowed see to kind overall me, odd a this really of kind we more to growth more Kristen, overall

point show lot you look expect a really you headwinds, you away to point, to more touched growth meaningful guidance. bit gave that's thinking where a those I'm things see at But XXXX, far start would of up. NBC can abate to I that realize I at curious, this just if you So, the we like and guess EBITDA on expirations, 'XX

Michael Ure

couple experienced to in factor loss Hi, of in to Good The I expect fee a we this we things deficiency Michael. XXXX, is point there. you that don't would expecting that A are be Spiro, question. XXXX. material

of what also as in XXXX. wells in have, comments, number exceeding we in XXXX, online You highlighted our we far the prepared saw coming

into of volume we as growth go portion should trail into the good XXXX. A

mid-single this So, on the which, also the some XXXX. the come XXXX. provide to we're side, talking gas on oil side, growth about low XXXX, the on water in part volumes provide will is prepare tailwinds year on mid-XXs spending into single to that of again, We're for -- capital side, in should

Spiro Dounis

Mike. helpful, That's Great.

math the end $XXX million on Second about enhanced the one, buybacks should just year. year the your of suggests it at looking for and left for guidance, my about distribution. use enhanced the thinking to be over distribution next by

kind for kind a just of is that's And of trigger about here? good time, just to of a whether are cash those year, guys you so go use remind how the maybe about or ahead and compelling thinking us on buybacks not execute and you you what this for point

Michael Ure

believers the Well, buyback program. so in we're big

worth total Obviously, XX seen little a As remarks, of that future price, a repurchase we results the million unit the of our program. program as buyback positive over demonstrating that based repurchased done through overall that bit largest whole. in prepared $X.X lot unit we optimism we've on which around been the we've of highlighted on We've period value the based today's time, of company. units, about a net billion purchaser

And enhanced we'll enhanced posture was continue at can't back full into there, use the which, year, mean, the see look free at the our find we look distribution to again, it during for same of we opportunistically the it a you give going -- so, the XXXX, impact. to as we program as utilize flow, distribution to spirit come as the out we're better highlighted, if have I the opportunity would cash buyback to we as unitholders.

our to flow we're -- got commitment cash a unitholders. back We've going the to free that return of

that pay and reduction And there through repurchases, either an distribution. debt year, back if then and during isn't we intend opportunity year -- that's the we'll then enhance so to

Operator

comes Your Wolfe from the Research. of Stanley Keith line question from next

is open. line Your

Keith Stanley

Thank afternoon. you. Good

III to and to in pay impact if uplift XXXX you gas a don't anymore? year the imagine, have about doing to Permian, you're offload just in there's as think curious up And to about I this how the think that? Mentone amount offloading First, financial when fair starts any of the way of

moving on III the relatedly, latest about fill based on growth might volume would in start up thoughts forward like 'XX? need potentially It plant. thinking would fast then when start to Mentone pretty offloading on processing again And another seem you you and just that

Michael Ure

Yes, Keith, questions. both good

a expecting a to expect do were lower to why we in have we impact versus related reason to in 'XX. So, margin have slightly of offloads, the margin part XXXX 'XX the

And as margin be so as those does in that utilizing uplift XXXX there would in Mentone much we're come not not online. once offloads III

And It's the as relates as on to future really on the it a It's today's with basin us great levels are on processing for it's necessary. basin. additional difficult we're expectations expectations -- and too not capacity find. the far whole, of becoming point. footprint arrangements incremental to will our tight as as be a into activity processing It's probably based capacity more that future those the in fewer And now. seeing well right world, offload where

Keith Stanley

helpful. That's

of Basin of declining a for half you adjustment year, increasing. the that DJ one, presumably was are negative, to you the first given one, a cost the which means producer forecasts Second in -- small talked the but service said just basin

latest just where updated Or Are DJ did you saying view the what's reference and over on there? see years? thoughts some producers now the few going? greater next midyear. a your can it volumes just better outlook give the You bottoming So, activity you

Michael Ure

Keith, hearing. it exactly Yes, is what that that's we're

basin, the you've as the see area. other in come approvals to well started have both think our of footprint a within I footprints lot as in different that

thus little work of bit of the people process would time to through a been sort And how we take approvals. it -- understand far, function. to people to it might expected, have As successful getting for

what in save is then whole. think producers as overall XXXX. is future declines cost I we're can there. expecting your off -- result, saving impact around of they and more on And our being Again, DJ reflection optimistic correct around service a the exactly do DJ And the of observation you're off expectations a in increased so, of the a as else the to during volumes

Kristen Shults

step you the materials comments take including the think that I to breakout, supporting the a Michael's capital if the provide, all further that's we you'll in in Keith, year-over-year And look see just DJ capital that there. change

Keith Stanley

Thank you.

Operator

Instructions] line from Neel the Mitra Bank of question next comes [Operator America. of Your from

Your open. line is

Neel Mitra

Hi, disclosures. wanted all good I have appreciate sure to just make commodity covered. I qualitatively the I afternoon. that of commodity the exposure

the where looks would it and if commodity I'm in me yield the Delaware? And else And the Wyoming could anything some like you you G&P have So, missing crude remind exposure the be? G&P side? in Utah, liquids exposure exposure on

Michael Ure

Neel, got is as there. volumes crude it excess The and contractual it. our in contracts recovery of the rates Yes, to fixed you've excess any impact relates

the actually everything an and looked seeing Instead exposure that's For an crude we the the a sensitivity potential demonstrate we there. individual on out CX+ of perspective. at price is measure it basis, that's oil-linked to so components, commodity basis where breaking from you're of on each oil-linked in order

there's of exactly price CX it's gas it little Basins. why gas, CX some in of on which is component on contracts from correct had any very then impact DJ But Delaware excess And for the the perspective, legacy Rockies. a the you in recoveries the

Neel Mitra

other side, feet much the volumes with offloading uplift of could roughly the you could Cactus an was quantify sale use? I II accretive heard right, capacity know from that was acquisition if And not possibly what flowing question. But just of looking impact be not it. at that's Tech my million, million XXX $XX the day into Lynch approximately second a The possibly additional I the Got with sale. then to EBITDA XXXX. as cubic

Michael Ure

basin. of question. processing a don't a entire fully We processing part a it's it's measure whole. really because system that It's the a Neel, a way. measure tied-in Yes, throughout as infrastructure full good it We don't actually

volumes to our any at Mentone So, point Spring Bone time, in Ramsey flow to to plants. we'll

whole. And think as as so, it a complex we of a

Kristen Shults

Yes.

about comment, the with of can Michael's that's you chart the pie I from much be and and right Basin, is my coming that there further back what Delaware going appendix those look earlier from asset going think level to to see there. just talking back you're back support perspective, inclusive the at how EBITDA to of

Neel Mitra

there's Got that. Or consider follow-up plant, it. Mentone you where processing possible other It that? acquisitions like the out capacity partner you a buy And like to would JV looks to get could Vida Mi next additional just the link? processing is the a with III

Michael Ure

have actively in that in our areas as and, where opportunities a always evaluating whole. business we enhance We're M&A needs particular,

So, We're it's actively whether that. in opportunities our around where Vida it's Mi other and are. at M&A assets looking or always

the where a couple acquisition you execute so, XXXX, we those, well the divestiture in on And as saw did of as on both side.

business ways an the we're can So, always perspective. enhance on we look M&A the from that for

Neel Mitra

you Got it. for call. the Thank

Operator

there no back time. further you. the Ure, over are And I turn this at questions Mr. to call

Michael Ure

you, everyone, wonderful organization. XXXX call. for future an future. Western for we joining their during It optimistic for Thanks, effort joining Midstream. XXXX employees that for the the to want thank really for contractors We're and our extra I year, again Thank everyone, have call. the was for the and a as

Operator

you. This concludes call. Thank today's conference

disconnect. You may now

Western Midstream Partners (WES) 23 Feb 232022 Q4 Earnings call transcript